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CGS INTERNATIONAL |
CGS INTERNATIONAL |
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DFI Retail Group A slow brew
■ DFI plans to take over Maxim’s Starbucks business (>1,100 outlets across 7 markets) in exchange for its 50% stake in Maxim’s and c.US$340m cash. ■ We expect FY27F earnings dilution from losing associate profit from Maxim’s, but the higher 80% payout could offset the impact to our FY27F dividend. ■ Cash proceeds to be deployed towards other M&A, with excess capital returned to shareholders. Reiterate Add.
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Banks Accelerating loans growth in Aug 26
■ Singapore loans grew 2.5% mom in Aug 26, outpacing deposits growth of 0.6% mom. LDR reached a 2-year high of 71.6%. ■ SORA expanded 14bp qoq to c.1.21% in 3Q26, although competition for quality loans could continue to pressure NIMs, in our view. ■ We reiterate our Neutral call on SG banks on stretched valuations, with unexciting sector yields of c.3.3-4.3% for FY26F.
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| UOB KAYHIAN | UOB KAYHIAN |
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Banking Aug 26 BNM Statistics: Firmer Loan Growth; Improving Funding Mix
Highlights • Business lending continued to strengthen and CASA mix improved, but household demand and approvals softened, while asset quality edged weaker with coverage broadly stable. • We expect sector earnings to grow by a decent 6% in 2027. Earnings resilience will be underpinned by modest loans growth, stable credit costs and relatively stable NIM with banks’ asset liability management helping to offset some of the headwinds from yield pressure.
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REITs S-REITs Monthly Update (Sep 26)
Highlights • An influx of safe-haven liquidity and low domestic interest rates have led to a record volume of transaction for commercial properties, encompassing office and retail properties. Thus, the S-REIT sector is supported by firm asset valuation and continued low cost of debt. • Maintain OVERWEIGHT. The S-REIT sector is a major laggard. Thus, SREITs are likely to be more resilient. BUY CAREIT (Target: S$1.39), CICT (Target: S$3.06), LREIT (Target: S$0.79), MPACT (Target: S$1.71), NTTDCR (Target: US$1.29) and UIBREIT (Target: S$1.16).
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| LIM & TAN | LIM & TAN |
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Coliwoo ($0.42, down 1.5 cts) wishes to announce that the Company has entered into two put and call option agreements dated 30 September 2026 (the “PCOAs”) with Qing Feng Construction Pte Ltd (the “Purchaser”) in relation to the sale of the entire issued and paid-up share capital of Coliwoo RV1 Pte Ltd (“RV1”) and Coliwoo RV2 Pte Ltd (“RV2”), and Coliwoo’s market cap stands at S$202mln and currently trades at 8.8x forward PE and 0.9x PB, with a dividend yield of 4.8%. The proposed sale and leaseback of assets are in line with Coliwoo’s capital recycling and asset-light strategy. This comes on the back of another recent sale and leaseback of Coliwoo Midtown, a co-living development to Capitaland Ascott Trust. Consensus target price stands at S$0.75, representing 78.6% upside from current share price. We maintain Accumulate on Coliwoo given its unique asset class which continues to show steady growth into FY26 and FY27.
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Civmec’s market cap stands at S$781mln and currently trades at 15.4x forward PE with a yield of 5%. Consensus target price stands at S$2.11, representing 37.9% upside from current share price. FY26 order book remained strong at A$1.4bln, providing good revenue visibility into FY27, while the tender and ECI pipeline continues to build across resources, defence, infrastructure and maintenance. We believe Civmec remains well positioned to benefit from sustained resources activity, opportunities surrounding the Henderson Defence Precinct and sovereign shipbuilding, as well as infrastructure projects such as Perth Park. However, in view of slightly lofty valuations, we reocmmend an Accumulate on weakness on Civmec. |
